BUSI 303 Quiz 3

Liberty BUSI 303 Quiz 3 Answers

  1. In the United States, the Federal Reserve Bank is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of money supply.
  2. The law of PPP states that similar goods or commodities in different countries should remain at the same price after conversion of currencies according to current exchange rates.
  3. The goals of the The Lomé Convention are threefold: (1) the reduction and eventual eradication of poverty in Signatory Island and land‐locked nations, (2) sustainable economic development in Signatory Island and land‐locked nations, and (3) the gradual integration of signatory countries into the world economy.
  4. The 1922 Fordney‐McCumber Act raised U.S. tariffs to historically high levels.
  5. Which of the following is not an industrial product exchanged within the global financial market?
  6. The membership requirements for the European Monetary Union (EMU) are based on the 5 convergent criterion: Price Stability, Sound Public Finance, Sustainable Public Finances Commodity Durability Convergence and Exchange Rate Stability.
  7. Which of the following is true concerning the IMF?
  8. The OTC Market has gradually evolved into the largest, fastest, and most flexible currency trading market in the world.
  9. With 11 beginning members in 1952, the European Union has now grown to a total of 28 members.
  10. The ________ of the world have become highly interdependent because of improvements in ________ and transportation technologies and the lowering of barriers to trade.
  11. Select the two reasons that global financial markets are important to borrowers
  12. ANCOM was established in 1990 with the Agreement of Cartagena, or Andean Pact, between Bolivia, Peru, Ecuador, and Chile.
  13. Trading blocs provide protection from global competitiveness.
  14. A Common Market includes all of the elements of a Customs Union and freedom of movement of the four factors of production: goods, services, capital, and labor.
  15. A pegged exchange rate is an exchange rate that is freely determined by the interaction of supply and demand.
  16. In 1979, Mexican President Carlos Salinas invited United States President Bill Clinton to organize a trade agreement that would increase investment and decrease tariffs between the U.S. and Mexico.
  17. The majority of transactions on the FX include operations with the Euro, where one party sells or buys dollars using other world currencies.
  18. All of the following are EU Member countries except
  19. The most prominent major financial markets are located.
  20. Approximately 50 percent of all world trade is conducted through regional trade agreements.
  21. Match the following

Economic Union

Regional Economic Integration

Custom Union


Customs Delays

Common Market

European Central Bank

Council of Europe

Political Union


International Monetary Fund (IMF)


FX swap

Futures positions

Currency Board

Forward Exchange

Direct Quotation

Indirect Quotation

Variable interest rate loan

Forward discount

Buy Answer Key
  • Find by class